THE TEXAS BRIEF
Good morning, Texans!
Over the last 48 hours, Texas saw major moves in power generation, critical minerals, life sciences, and venture capital. A $4B energy acquisition, billion-dollar rare-earth manufacturing discussions in DFW, and $550M+ in Austin startup funding point to where capital and operators are placing their next bets.
TEXAS BUSINESS MOVES
1. Vistra to buy Cogentrix Energy in $4B deal
Irving-based Vistra agreed to acquire independent power producer Cogentrix as it looks to expand generation capacity amid rising Texas power demand. → Link
Why it matters: Power consolidation is accelerating as operators position for sustained load growth from data centers, manufacturing, and electrification.
2. MP Materials weighs $1B+ rare earth magnet factory expansion in DFW
MP Materials is considering a second North Texas facility that could exceed $1 billion in investment to scale domestic rare earth magnet production. → Link
Why it matters: Texas is emerging as a strategic hub for onshoring critical materials tied to EVs, defense, and advanced manufacturing.
3. Austin startups raised $550M+ in December
Austin companies closed more than $550 million in funding in December, led by Curative and nuclear startup Last Energy.→ Link
Why it matters: Capital is concentrating into fewer, larger Texas-based platforms—signaling investor preference for scale-ready operators.
4. Sugar Land approves first life sciences incentive for Hope Biosciences
Sugar Land approved its first life sciences incentive package to support Hope Biosciences’ expansion and increased manufacturing capacity. → Link
Why it matters: Suburban cities are now competing to anchor life sciences clusters outside traditional urban cores.
5. Critical minerals recycler wins $11.5M federal grant for Briggs plant
A Texas recycler secured federal funding to produce virgin-quality tungsten carbide powder at lower cost and higher efficiency.→ Link
Why it matters: Federal dollars are flowing toward domestic materials processing—and Texas is being selected as a scale destination.
6. KBR secures $350M USGS contract; spinoff planned
Houston-based KBR landed a $350 million government contract and is preparing a spinoff of its government services business. → Link
Why it matters: Government-tech and space-adjacent work is becoming a more meaningful revenue pillar for Houston operators.
Secondary Signals (Still Worth Knowing)
Texas banking consolidation moved closer to closing as Comerica shareholders approved Fifth Third’s $10.9B acquisition. → Link
Texas reclaimed the No. 1 in-migration ranking nationwide, with both Houston and Austin climbing U-Haul’s 2025 growth index.→ Link
Google finally activated a long-vacant downtown Austin tower, moving into the Sail Tower after years of delayed occupancy. → Link
Houston office properties continue to churn as Kirkwood Tower in the Energy Corridor traded hands again just months after its last sale. → Link
A major retail real estate sale unraveled when a planned $947M JCPenney store portfolio transaction failed to close by its deadline. → Link
Texas regulators stepped up scrutiny of hotel pricing practices, securing a $1.25M settlement with Hyatt over undisclosed fees. → Link
Plano’s business district landed a symbolic win as AT&T’s headquarters relocation was framed by local leaders as a validation of the city’s long-term office strategy. → Link
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— Robert
Editor, Texas Operator